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1- you are considering buying a bond that matures in 10 years from today. the par value of the bond is 10,000$ and the coupon
1- you are considering buying a bond that matures in 10 years from today. the par value of the bond is 10,000$ and the coupon rate is 7%. if the current market interest rates are 5%, what is the bond price today if the coupon is paid anually?
2- a 1000 par bond with an anual coupon has only 1 year until maturity. its current yeild is 7.621% and its yeild to maturity is 12%. what is the price of the bond?
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